Howa Machinery (TSE:6203) Asset Turnover: 0.35 (As of Mar. 2026)

What is Howa Machinery Asset Turnover?

Howa Machinery TSE:6203 +4.21% 61 Asset Turnover is 0.35 as of Mar. 2026. GuruFocus rates TSE:6203 with a GF Score™ of 61/100 and a GF Value™ of 円1,025.89 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Howa Machinery's Revenue for the six months ended in Mar. 2026 was 円12,294 Mil. Howa Machinery's Total Assets for the quarter that ended in Mar. 2026 was 円34,836 Mil. Therefore, Howa Machinery's Asset Turnover for the quarter that ended in Mar. 2026 was 0.35.

Asset Turnover is linked to ROE % through Du Pont Formula. Howa Machinery's annualized ROE % for the quarter that ended in Mar. 2026 was 6.29%. It is also linked to ROA % through Du Pont Formula. Howa Machinery's annualized ROA % for the quarter that ended in Mar. 2026 was 3.65%.

Howa Machinery (TSE:6203) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Howa Machinery's annulized ROE % for the quarter that ended in Mar. 2026 is

	ROE %^**		(Q: Mar. 2026 )
=	Net Income	/	Total Stockholders Equity
=	1270	/	20194.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(1270 / 24588)	*	(24588 / 34835.5)	*	(34835.5/ 20194.5)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	5.17 %	*	0.7058	*	1.725
=	ROA %	*	Equity Multiplier
=	3.65 %	*	1.725
=	6.29 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Howa Machinery's annulized ROA % for the quarter that ended in Mar. 2026 is

	ROA %		(Q: Mar. 2026 )
=	Net Income	/	Total Assets
=	1270	/	34835.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(1270 / 24588)	*	(24588 / 34835.5)
=	Net Margin %	*	Asset Turnover
=	5.17 %	*	0.7058
=	3.65 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Howa Machinery Asset Turnover Related Terms

Howa Machinery Asset Turnover Historical Data

* Premium members only.

The historical data trend for Howa Machinery's Asset Turnover can be seen below:

Howa Machinery Asset Turnover Chart

Howa Machinery Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Asset Turnover

Get a 7-Day Free Trial

0.73

0.71

0.68

0.77

0.69

Howa Machinery Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Asset Turnover	Get a 7-Day Free Trial															0.33	0.34	0.42	0.35	0.35

TSE:6203 vs GEV, ETN, PH: Asset Turnover Comparison

For the Specialty Industrial Machinery subindustry, Howa Machinery's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Howa Machinery Asset Turnover vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Howa Machinery's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Howa Machinery's Asset Turnover falls into.

Save Embed

61GF Score

Howa Machinery Ltd TSE:6203

Asset Turnover is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Howa Machinery Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Howa Machinery's Asset Turnover for the fiscal year that ended in Mar. 2026 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Mar. 2026 )	/	( (Total Assets (A: Mar. 2025 )	+	Total Assets (A: Mar. 2026 ))	/ count )
=	24064	/	( (34051	+	35826)	/ 2 )
=	24064	/	34938.5
=	0.69

Howa Machinery's Asset Turnover for the quarter that ended in Mar. 2026 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Mar. 2026 )	/	( (Total Assets (Q: Sep. 2025 )	+	Total Assets (Q: Mar. 2026 ))	/ count )
=	12294	/	( (33845	+	35826)	/ 2 )
=	12294	/	34835.5
=	0.35

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Frequently Asked Questions Learn more about Asset Turnover →

What does a Asset Turnover of 0.35 mean?

Howa Machinery (TSE:6203) has a Asset Turnover of 0.35 as of Mar. 2026. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Howa Machinery and its competitors.

Is Howa Machinery's Asset Turnover too high?

Howa Machinery's current Asset Turnover is 0.35. Overall, Howa Machinery has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Howa Machinery's Asset Turnover compare to GEV and ETN?

Howa Machinery's Asset Turnover of 0.35 can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Asset Turnover for an Industrial Products company?

A good Asset Turnover depends on the Industrial Products industry context. However, Asset Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Asset Turnover mean?

A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Howa Machinery and its competitors. Howa Machinery's current Asset Turnover is 0.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Howa Machinery stock overvalued right now?

Based on GuruFocus' analysis, Howa Machinery (TSE:6203) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,025.89, compared to a current price of 円1,635.00 — trading 59.4% above its estimated fair value. The current Asset Turnover is 0.35. Howa Machinery's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Asset Turnover calculated?

Asset Turnover is calculated from a company's financial statements. For Howa Machinery (TSE:6203), the current Asset Turnover is 0.35 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Howa Machinery (TSE:6203) Overvalued in 2026?

Based on GuruFocus' analysis, Howa Machinery stock appears to be overvalued. The current stock price of 円1,635.00 is trading 59.4% above its estimated GF Value™ of 円1,025.89. GuruFocus considers Howa Machinery to be Significantly Overvalued.

Key valuation signals for TSE:6203:

Asset Turnover: 0.35
GF Value™: 円1,025.89 vs. price of 円1,635.00 (59.4% above fair value)
GF Score™: 61/100 with 6 warning signs

No single metric tells the full story. See the TSE:6203 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Howa Machinery Business Description

Industry Industrials Industrial Products

Comparable Companies TSE:5367 TSE:6018 TSE:6246 TSE:6505 TSE:6224 TSE:6392 TSE:6482 TSE:6496 TSE:6365 TSE:6317 GEV XTER:SIE XPAR:SU ETN XTER:ENR PH CMI OSTO:ATCO A EMR ITW

Address 1900-1, Sukaguchi, Kiyosu, Aichi, JPN

Website http://www.howa.co.jp

Howa Machinery Ltd engages in the manufacture and sale of machine tools, pneumatic and hydraulic equipment, electronic machines, firearms, construction materials and construction machinery.

61GF Score

Get the complete analysis for TSE:6203

Asset Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,635.00

Price

円1,025.89

GF Value

View TSE:6203 Analysis

See Asset Turnover data for all stocks →